You can dye wool with it, or you can create decorative blocks of it using 9 pieces.
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You can make the following: Lapis Lazuli blocks, and Blue wool To make Lapis Lazuli blocks L L L L L=Lapis Lazuli To make blue wool W L L=Lapis Lazuli W=Wool
You can make blocks out of it, for building with, it can also be used as a dye.
Lapis lazuli (the blue dye) cannot be crafted, but is mined from lapis lazuli ore, which can be found most commonly between 13 and 16 metres above bedrock level. Mining a lapis lazuli ore block with a stone or stronger pickaxe yields 4-8 lapis lazuli shards.
You can craft things with Lapis like: A Lapis Lazuli block, light blue dye, cyan dye, purple dye, magenta dye and blue wool. You can check out Minecraft Wiki for some help and tips.
There was a present on the beach of the mayors city. there a Lapis Lazuli inside. If you already sold it you have to get a sparkling blue wonderful and refine it and if your lucky it will be a Lapis Lazuli.